cancel
Showing results for 
Search instead for 
Did you mean: 

NFCU SSL

Highlighted
Super Contributor

Re: NFCU SSL


@Lizzo wrote:

Why would you get a 5 year loan but pay it down to 8.9% the same day? Isn't the point to report payments each month for 5 years?


I for one would like to get my money back immediately instead of it being frozen.

Read the primers I posted. You'll understand the fundamentals.

That's why we love Navy. They will report monthly.

You get the FICO scoring bonus for installment loan when utility is at 8.9% or under.

Message 51 of 121
Highlighted
Established Contributor

Re: NFCU SSL

Right, but why bother getting 5 years if you're paying it down to 8.9% the same day? Clearly you're not getting 5 years of payments lol.



Message 52 of 121
Highlighted
Super Contributor

Re: NFCU SSL


@Lizzo wrote:

Right, but why bother getting 5 years if you're paying it down to 8.9% the same day? Clearly you're not getting 5 years of payments lol.


Mmm. Fico scoring bonus? Open installment loan for 5 years instead of 1 year? The point you might be missing is future dates. You'll be building history. 

Message 53 of 121
Highlighted
Super Contributor

Re: NFCU SSL

513credit Clearly you haven’t read about the SSL technique.

Five years of payments aren’t gonna do anything for your score (unless you miss one of those payments); on the other hand, bringing aggregate installment utilization under 8.9% is going to give you a 15 to 30 point boost. And wouldn’t that be lovely for five years?

Which would you rather have?
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.

RIP:







Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 54 of 121
Highlighted
Established Contributor

Re: NFCU SSL


@Birdman7 wrote:
513credit Clearly you haven’t read about the SSL technique.

Five years of payments aren’t gonna do anything for your score (unless you miss one of those payments); on the other hand, bringing aggregate installment utilization under 8.9% is going to give you a 15 to 30 point boost. And wouldn’t that be lovely for five years?

Which would you rather have?

I have read it, but I have posted that I do not understand, so I'd like some help. How would it last for five years if you make a payment down to 8.9% when your next month's payment pays off the loan? That's defeating the purpose.. If you only make one payment, how do they report a monthly payment to give you history for those 5 years? If it's pointless to have 5 years of payments reported, whats the point of a SSL? To my knowledge it is to show that you can pay debt off... 

 

If I give NFCU $3010 and pay them $3010, why wouldn't I get $6020 back? Why does NFCU make $3010 off of me?



Message 55 of 121
Highlighted
Super Contributor

Re: NFCU SSL

No you misunderstand the concept. You give them 3010 to hold. They then loan you 3010. You then pay them back all but the 8.9%. They then release back to you the amount of funds that you paid towards the loan.

You will still have on deposit with them the remaining balance. They will push out the payment date for approximately four years and change. You will not have another payment due for over four years probably.

It is suggested that you make a couple dollar payment either every month or every so many months just to keep it active, but that way you keep an open loan open for five years below 8.9%.

This way you realize the scoring benefit for five years. You do not completely pay it off until the five years has ran.

Also you don’t have to keep opening loans and taking hits to your AAoA. Understand?
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.

RIP:







Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 56 of 121
Highlighted
Super Contributor

Re: NFCU SSL

To further explain, you don’t continue to make full monthly payments. Your next payment is not due for years. You could do a three dollar auto payment every month, just to keep it active.

Even if you don’t make a payment, you will still get a checkmark for a payment on your CR, because you’ve already made it, just in advance.

It’s kind a like taking out four years of payment coupons and going and paying them, the next ones not due for quite a while.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.

RIP:







Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 57 of 121
Highlighted
Super Contributor

Re: NFCU SSL


@satio wrote:

@Saeren wrote:

@Lizzo wrote:
Is this where you deposit $3,000 like Self Lender? Help me understand.

The trick with the SSL is that NFCU pushes your payment due date back by however many payments you pay in advance instead of shortening the life of the loan. Since the score benefit is only good when you have an active installment loan and even further, there is an additional boost when you pay it down to 8.9% of the original amount, this means you can take out a 5 year loan ($3010 would be the minimum I would do or you could stuck with a 3 year term), pay it immediately down to 8.9% remaining, and then you get the scoring benefit for the next 5 years. Just make sure you make a small payment towards it of a couple bucks every few months so that it doesn’t go inactive on your credit report and stop counting. 


I'm getting ready to do the same transaction with NFCU.  Please clarify the last piece of this puzzle from your latest post.

 

After paying it down immediately to push out the next due payment and bring balance owed to < 8.9, I also need to make some small token payment on some sort of regular frequency between the loan date and the pushed out due date so that it remains "active" with CRAs?

 

 


I don't know but I do make a small payment each month.


Total revolving limits 648500 (572500 reporting) FICO 8 EQ 728 TU 755 EX 732

Message 58 of 121
Highlighted
Frequent Contributor

Re: NFCU SSL


@SouthJamaica wrote:

@satio wrote:

@Saeren wrote:

@Lizzo wrote:
Is this where you deposit $3,000 like Self Lender? Help me understand.

The trick with the SSL is that NFCU pushes your payment due date back by however many payments you pay in advance instead of shortening the life of the loan. Since the score benefit is only good when you have an active installment loan and even further, there is an additional boost when you pay it down to 8.9% of the original amount, this means you can take out a 5 year loan ($3010 would be the minimum I would do or you could stuck with a 3 year term), pay it immediately down to 8.9% remaining, and then you get the scoring benefit for the next 5 years. Just make sure you make a small payment towards it of a couple bucks every few months so that it doesn’t go inactive on your credit report and stop counting. 


I'm getting ready to do the same transaction with NFCU.  Please clarify the last piece of this puzzle from your latest post.

 

After paying it down immediately to push out the next due payment and bring balance owed to < 8.9, I also need to make some small token payment on some sort of regular frequency between the loan date and the pushed out due date so that it remains "active" with CRAs?

 

 


I don't know but I do make a small payment each month.


The regular payments also help to avoid any possible inactive/dormant account fees.
NFCU inactive dormant.JPG







Message 59 of 121
Highlighted
Super Contributor

Re: NFCU SSL

Dormant/inactive fees aren’t charged if you have a credit card and let’s face it, everyone on MF joining NFCU gets a card. 

 

I believe that whether you are making payments monthly or not, NFCU won’t charge you those fees if you have an SSL but regardless it’s a good idea to make payments regularly. 

 

I also noticed that auto pay no longer has a $5 minimum. I was going through the process to set up $2 payments this morning and it let me get to the end but I don’t want to make a payment yet so I’ll set it up next month. 



Message 60 of 121
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.